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I could use one of those to illustrate basic internals to my father.
Wow. Not sure which is more hardcore -- this, or the guy who built a complete programmable replica of the Apollo guidance computer using only the original manuals: http://klabs.org/history/build_agc/
I think he's using the computer to host his web site.
By vote's for the apollo guy. But both are pretty incredible!
I read about this a month or two ago. Watched the video, read the whole paper, it's awesome. A great way to demonstrate that computers are really just machines and not magical at all.
Things like this make me wish (a little) that I had been an electrical engineer rather than a CS major.
You could do this with a CS background, I think. Relays are very simple to understand. If current is flowing from A to B, then current can flow from C to D. Otherwise, it can flow from C to E. They way they work (conceptually; I've never taken one apart) is that running current from A to B powers an electromagnet. There's a wire tied to C and the other end is pressed against E by a spring. The electromagnet pulls on the spring and moves the wire from E to D. They're just little mechanical if-then-else constructs.

If you run a wire from B to C and connect a battery to A and E, you'll get a nice buzzing sound as it oscillates between states.

Wow, just about perfect... sixth photo down, it seems to be in his bedroom. And there is a Home build CPU 'ring',yow!
How does it make money?
You invite people over to use it, and then you make them watch an ad first.
Got to see a demo of this system in person, and it was truly spectacular. I learned more in 10 minutes watching this thing than I did reading multiple books. (I took 'Compilers' from this guy, HIGHLY recommended to anyone who happens to be at portland state.)
-1, NOT SOLID STATE ENOUGH